• 5 Fast Answers About the 504 Loan Program

    Community Business Finance is dedicated to borrower and lender education about the 504 Loan Program. Over the last 10 years, we've collected some of the more frequently asked questions from companies that we have proudly financed. These are five of the most common. For a more comprehensive list of questions and answers, visit our FAQ.

    1. What are the main advantages of a 504 loan?
      504 loans are fixed-rate low interest loans repaid long term (20 years) with as little as 10% down. Review the Program Benefits in our 504 School for more detailed information

    2. Can other costs be included in a 504 loan?
      Yes! Soft costs and closing costs can be financed through the 504 Loan Program, which preserves working capital. Examples of these costs include title insurance fees, architect fees, engineering fees, any required environmental studies, the cost of a project appraisal, and the cost of any survey required to provide clear title.

    3. Where can my capital injection/down payment come from?
      Your capital injection can come from your own savings, home equity, or monies given to you by a friend or family member that you don't have to repay. You cannot finance your capital requirement through other sources (for example, credit cards or another lending source). At least half of your contribution must come from your own sources, such as savings. You can also borrow against your retirement accounts, which represent personal equity. For more information, review the article "Borrower Contribution for the 504 Loan Program".

    4. What documentation will I need when I submit my loan application?
      You will need all the application forms completed, personal and business tax returns for the last three years, financial statements on the business for the last three years. Start-ups will need a business plan, projections, and assumptions on which the projections are based. You can review a more detailed list in our 504 School.

    5. What if my bank doesn't want to do a 504 loan?
      Community Business Finance will work with any bank or non-bank lender and will handle all of the SBA paperwork for them. Any borrower can call our office directly to receive an application and/or a referral to a lender familiar with the 504 loan process.

    504 Loans Make Sense

    Community Business Finance's 504 Loan Program allows you to keep more of your cash reserves through lower down payments, longer amortization, and financed closing costs.

    Get started by filling out a short form on our website, or contact our offices directly to discover how partnering with Community Business Finance will help you realize your business dreams.

    In Texas call Bill Ebersole at 713-457-1650, ext. 201, or email him at bill@communitybusinessfinance.com.

    In Louisiana, call Jeanne Bergeron at 1-800-462-1017 or email her at jeanne@communitybusinessfinance.com.

    Share this post